Marble & onyx products manufacturing (rs. 1.98 million)

Pre-Feasibility Study
(Marble & Onyx Products Manufacturing)
Small and Medium Enterprises Development Authority
Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
helpdesk@smeda.org.pk
REGIONAL OFFICE
Punjab
REGIONAL OFFICE
Sindh
REGIONAL OFFICE
Khyber Pakhtunkhwa
REGIONAL OFFICE
Balochistan
3rd
Floor, Building No. 3,
Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) 36304926-7
helpdesk.punjab@smeda.org.pk
5TH Floor, Bahria
Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 35610572
helpdesk-khi@smeda.org.pk
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) 5286908
helpdesk-pew@smeda.org.pk
Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623, 2831702
Fax: (081) 2831922
helpdesk-qta@smeda.org.pk
Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
December, 2013

Pre-feasibility Study Marble & Onyx Products Manufacturing Unit
Table of Contents
1. DISCLAIMER .................................................................................................................................2
2. PURPOSE OF THE DOCUMENT.......................................................................................................3
3. INTRODUCTION TO SMEDA...........................................................................................................3
4. INTRODUCTION TO SCHEME.........................................................................................................4
5. EXECUTIVE SUMMARY..................................................................................................................4
6. BRIEF DESCRIPTION OF PROJECT & PRODUCT ...............................................................................4
7. CRITICAL FACTORS........................................................................................................................5
8. INSTALLED & OPERATIONAL CAPACITIES.......................................................................................5
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT..............................................................................5
10. POTENTIAL TARGET MARKETS / CITIES..........................................................................................6
11. PRODUCTION PROCESS FLOW.......................................................................................................6
12. PROJECT COST SUMMARY ............................................................................................................6
12.1 PROJECT ECONOMICS ..................................................................................................................... 7
12.2 PROJECT FINANCING ....................................................................................................................... 7
12.3 PROJECT COST................................................................................................................................ 7
12.4 SPACE REQUIREMENT ..................................................................................................................... 7
12.5 MACHINERY AND EQUIPMENT.......................................................................................................... 8
12.6 OFFICE EQUIPMENT......................................................................................................................... 9
12.7 RAW MATERIAL REQUIREMENTS ..................................................................................................... 9
12.8 INITIAL WORKING CAPITAL............................................................................................................... 9
12.9 HUMAN RESOURCE REQUIREMENT............................................................................................... 10
12.10 PRODUCT MIX AND REVENUE GENERATION ................................................................................. 10
13. CONTACTS.................................................................................................................................. 11
14. ANNEXURES ............................................................................................................................... 12
14.1 INCOME STATEMENT...................................................................................................................... 12
14.2 STATEMENT OF CASH FLOW.......................................................................................................... 13
14.3 BALANCE SHEET ............................................................................................................................ 14
14.4 USEFUL PROJECT MANAGEMENT TIPS ......................................................................................... 15
14.5 USEFUL LINKS................................................................................................................................ 16
15. KEY ASSUMPTIONS..................................................................................................................... 17

1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a
general idea and information on the subject. Although, the material included in
this document is based on data / information gathered from various reliable
sources; however, it is based upon certain assumptions which may differ from
case to case. The information has been provided on as is where is basis without
any warranties or assertions as to the correctness or soundness thereof.
Although, due care and diligence has been exercised to compile this document,
the contained information may vary due to any change in any of the concerned
factors, and the actual results may differ substantially from the presented
information. SMEDA, its employees or agents do not assume any liability for any
financial or other loss resulting from this memorandum in consequence of
undertaking this activity. The contained information does not preclude any further
professional advice. The prospective user of this memorandum is encouraged to
carry out additional diligence and gather any information which is necessary for
making an informed decision, including taking professional advice from a
qualified consultant / technical expert before taking any decision to act upon the
information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 2

2. PURPOSE OF THE DOCUMENT
The objective of the pre-feasibility study is primarily to facilitate potential
entrepreneurs in project identification for investment. The project pre-feasibility
may form the basis of an important investment decision and in order to serve this
objective, the document/study covers various aspects of project concept
development, start-up, production, marketing, finance and business
management.
The purpose of this document is to facilitate potential investors in Marble & Onyx
Products Manufacturing Unit by providing them a general understanding of the
business with the intention of supporting potential investors in crucial investment
decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes
such reports reveal certain thumb rules; best practices developed by existing
enterprises by trial & error, and certain industrial norms that become a guiding
source regarding various aspects of business set-up and it’s successful
management.
Apart from carefully studying the whole document one must consider critical
aspects provided later on, which form basis of any Investment Decision.
3. INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was
established in October 1998 with an objective to provide fresh impetus to the
economy through development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the
national income, through development of the SME sector, by helping increase
the number, scale and competitiveness of SMEs", SMEDA has carried out
‘sectoral research’ to identify policy, access to finance, business development
services, strategic initiatives and institutional collaboration and networking
initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment
has been a hallmark of SME facilitation by SMEDA.
Concurrent to the prefeasibility studies, a broad spectrum of business
development services is also offered to the SMEs by SMEDA. These services
include identification of experts and consultants and delivery of need based

capacity building programs of different types in addition to business guidance
through help desk services.
4. INTRODUCTION TO SCHEME
Prime Minister’s Youth Business Loan, for young entrepreneurs, with an
allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand
(100,000) beneficiaries, through designated financial institutions, initially through
The National Bank of Pakistan (NBP) and The First Women Bank Ltd. (FWBL).
Loans for 0.1 million to 2.0 million with tenure up to 8 years inclusive of one year
grace period and a debt: equity of 90 : 10 will be disbursed to SME beneficiaries
across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan,
Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Areas
(FATA).
5. EXECUTIVE SUMMARY
Marble & Onyx Products Manufacturing Unit is proposed to be located at
Peshawar, Mangopir, Hub, Karachi, Gujranwala, Islamabad, Lahore, Lasbela,
and Risalpur.
Product(s) include Marble & onyx Flower Vases, Jar, Chess Boards, Animal
Shapes, Cigarette Ash Trays and Photo Frames.
Installed capacity of the project is to process12,060 sq.ft of Marble with initial
utilization of 6,030 sq.ft in year 1., at 50% capacity utilization.
Total cost estimate is Rs. 1.98 million with fixed investment of Rs.1.40 million and
working capital of Rs. 0.59 million.
Given the cost assumptions, the Internal Rate of Return and Payback period are
51% and 02 years respectively.
6. BRIEF DESCRIPTION OF PROJECT & PRODUCT
• Technology: The proposed unit will comprise processing machines including
12 & 18 inch cutters and 5 ft Lathe machine to produce different types of
marble handicrafts.
• Location: The Unit would be located at Peshawar, Karachi, Hub, Gujranwala,
Islamabad, Lahore, Lasbela, Quetta and Risalpur or near marble processing
clusters for easy transportation of raw material and finished goods.

• Product: Handicrafts including Flower Vases, Cigarette Ashtray, Chess
Boards, Photo Frames and Eggs/Oval Shapes etc.
• Target Market: Main buyers would be domestic consumers, corporate
customers, foreign visitors and companies / individuals dealing in local and
export orders.
• Employment Generation: The proposed project will provide direct
employment to 10 (ten) people.
• Profitability: The Financial Analysis shows that the unit will be profitable from
the very first year.
7. CRITICAL FACTORS
Following are the critical factors for the business:
• Proximity to variety of supply sources and markets
• Efficient and cost effective procurement of raw material
• Availability and retention of skilled labour force
• Know how about the trends in the market
• Availability of electricity and water supply
• Effective Marketing
8. INSTALLED & OPERATIONAL CAPACITIES
The installed capacity of the project will be 12,060 sq. ft. per year, with initial
operational capacity in year 1 estimated at 6,030 (50%) sq. ft. / year. A total of 56
tons of raw marble & onyx will be required to produce 6,030 sq. ft. of finished
handicraft in one year.
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT
Marble and Granite industry in Pakistan has total estimated reserves of around
160.1 million tons, The marble and onyx mines of Pakistan are mainly located in
Balochistan (Chaghi, Lasblea, Loralai, Mastong, and Naal), Khyber Pakhtunkhwa
/ Federally Administered Tribal Areas (Bunair, Mardan, Mohamand, Swat,
Chitral), and Sindh (Dadu, Johi range). Major marble processing clusters are
concentrated in Gujranwala, Islamabad / Rawalpindi, Karachi, Hub, Mangopir,
Lasbela, Lahore, Peshawar and Nowshehra / Risalpur. As the production of
Handicraft is dependent upon the easy availability of optimum variety of marble
and onyx therefore the project should be established in or around the
aforementioned cities.

10. POTENTIAL TARGET MARKETS / CITIES
The marble & onyx products are famous worldwide for their uniqueness and are
used as decorative and gift items. Major export markets for these marble & onyx
handicrafts are Central Asian Republics, United States of America and Australia.
The domestic market also carries a great untapped potential for these
handicrafts, catering to tourists, handicraft shops, antiques shops and hotel
industry.
11. PRODUCTION PROCESS FLOW
The production process includes stone cutting, shape cutting, grinding / rubbing,
polishing and packaging. Cutters, Lathe Machine(s), Grinders and Polishing
Machines are used for this purpose.
Stone Cutting: The procured raw stone is brought to the unit where it is cut to
desired pieces depending upon the product to be made. The stone-cutting
process consists of fixing the raw stone on a trolley set on four steel columns to
cut the stone.
Shape Cutting: Craftsman fixes the cut piece into the lathe machine and cuts
the corners to give it the basic shape of the product.
Grinding and Rubbing: Hand and bench grinders are used to give final shape,
to the product.
Polishing and Finishing: Polishing and finishing machines are then used to
bring shine.
Packaging: Finished products are packed as per the requirement of the buyer.
Corrugated carton boxes with packing are normally used to keep the product
safe during transportation. Product specifications and quantity tags should be
used as a standard practice.
12. PROJECT COST SUMMARY
A detailed financial model has been developed to analyze the commercial
viability of Marble and Onyx Product Manufacturing Unit under the ‘Prime
Minister’s Youth Business Loan’ scheme. Various cost and revenue related
assumptions along with results of the analysis are outlined in this section.
Cutting
(Pieces)
Shape
Cutting
Grinding and
Shaping
Polishing
/ finishing
Packaging

12.1 Project Economics
All the figures in this financial model have been calculated for installed capacity
of 12,060 sq. ft. per year, with initial operational capacity in year 1 estimated at
6,030 (50%) sq. ft. / year.
The following table shows Internal Rates of Return, Payback Period and NPV
Table 1: Project Economics
Description Details
Internal Rate of Return (IRR) 51%
Payback Period (Years) 02
Net Present Value (NPV) (Rs.) 12,867,349
12.2 Project Financing
Following table provides details of the equity required and variables related to
bank loan:
Table 2: Project Financing
Description Details (Rs.)
Total Equity (10%) 198,393
Bank Loan (90%) 1,785,537
Markup to the Borrower (%age/annum) 8%
Tenure of the Loan (Years) 08
Grace Period (Year) 01
12.3 Project Cost
Following requirements have been identified for operations of the proposed
business:
Table 3: Project Cost
Capital Investment Amount (Rs.)
Building Security 100,000
Office Equipment / Furniture 182,600
Machinery & Equipment 1,115,000
Total Capital Costs 1,397,600
Initial Working Capital 586,330
Total Project Cost 1,983,930
12.4 Space Requirement
The business will be operated in rented premises measuring 5,440 sq. ft. having
monthly rent estimated at Rs. 30,000/- per month. The area has been calculated
on the basis of space requirement for production area, management office, scrap
yard, stores and pavement/driveway. No set pattern is followed by the units

operating in the industry. Following table shows calculations for project space
requirement.
Table 4: Space Requirement
Space Requirement Size (Sq.ft)
Management Office 625
Production Area 2,000
Scrap Yard 490
Store 625
Pavement/driveway 700
Grounds 1,000
Total Area 5,440
12.5 Machinery and Equipment
Following table provides list of machinery and equipment required for an average
Marble & Onyx Products Manufacturing Unit. .
Table 5: Machinery and Equipment
Description Quantity
Cost
Rs/unit
Total
Rs.
Cutter (12 &18”) 2 175,000 350,000
Lathe Machine (5ft to 6ft) 1 250,000 250,000
Grinders (Hand ) 5 20,000 100,000
Polisher 2 100,000 200,000
Pumps and motors 130,000 130,000
Consumables
(Adhesives, Sealants, acids &
detergents etc)
As per
requirements 20,000 20,000
Tools As per
requirements
15,000 15,000
Tri pod Chain Crane 1 50,000 50,000
Total 1,115,000
Local machinery can be used to manufacture marble and onyx products /
handicrafts. On the other hand, the option of second hand machinery can also be
availed with 40% less cost than the new machinery. Skill set of workers
determines the quality of final product, therefore, using second machinery is a
viable option.

12.6 Office Equipment
Provision of Rs. 182,600/- has been made for procurement of computer with
accessories, table, desk, chairs, and an air conditioner. The breakup of office
equipments is as follows:
Table 6: Office Equipment Cost
Description Quantity Cost Amount (Rs)
Computers 1 35,000 35,000
UPS 1 8,000 8,000
Computer printer 1 5,000 5,000
Telephones 2 800 1,600
Furniture As per
requirements
85,000 85,000
Air conditioners 1 48,000 48,000
Total 182,600
12.7 Raw Material Requirements
Based on our assumptions, it would be necessary to stock four (04) ton of raw
material in order to cover any unforeseen demand. It is also expected that since
green onyx products are demanded more, therefore, more inventory of raw green
onyx is to be maintained.
Table 7: Cost of Material/month
Unit Rate Qty Total Amount (Rs.)
Onyx (Green) Ton 60,000 28 1,680,000
Marble (Ziarat White) Ton 50,000 14 700,000
Onyx (White) Ton 50,000 14 700,000
Total 56 3,080,000
12.8 Initial Working Capital
Table 8: Working Capital (Two months)
S.
No
Description Monthly
Amount
(Rs.)
Initial two
Months
Amount (Rs.)
1 First Two Month Salaries 106,000 212,000
2 First Two Months Advance Building Rent 30,000 60,000
3 First Two Months Utilities Charges 35,000 70,000
4 First Two Months Misc. Expenses 7,500 15,000
5 Office Stationary (2 Months) 8,000 16,000
6 Raw Material 106,666 213,330
Total 293,166 586,330

12.9 Human Resource Requirement
Marble and Onyx industry is a highly specialized industry that requires skilled
labor. A total of 10 persons will be required to handle the production processes of
Marble & Onyx Products Manufacturing Unit. The Unit will work on shift basis (8
hours daily). Technical staff with relevant experience will be required for
operating machines. Salaries of all employees are estimated to increase at 10%
annually. Human resource detail is given in the table below:
Table 9: Human Resource Requirement
Description No. of Employees Salary per month
(Rs)
General Administrative Staff
Office Assistant 1 13,000
Production Staff
Cutting Machine Operator 1 11,500
Lathe Machine Operator 1 11,500
Grinder Operators 3 30,000
Factory Worker 2 20,000
Support Staff/ Guard 2 20,000
Total Staff 10 106,000
12.10 Product Mix and Revenue Generation
For the purpose of this pre-feasibility, only Marble and Onyx handicrafts will be
produced and waste will be sold in the market. Details of the product mix, prices
and revenue are given in the table below:
Table 10: Product Mix with Annual production
Product Unit
First Year
Production
(Pieces)
Sales
Price
(Rs./Unit)
First Year
Sales
Revenue
(Rs)
Flower Vase No. 128 7,000 896,000
Chess Board No. 391 1,500 586,500
Jar No. 231 5,000 1,155,000
Animal Shapes No. 1,205 300 361,500
Cigarette Ash Tray No. 901 300 270,300
Photo Frame No. 194 300 58,200
Onyx & Marble (Waste 469 tons) Ton 5,000 2,345,000
Total Sales Revenue 3,050 5,672,500

13. CONTACTS
Table 11: List of Contacts-Suppliers, Experts, Consultants and Development
Institutions
S.No Contact Organization Address Service
1 Mr. Farooq Maqsi Indus Dimension
Stone
Shop No. 195
F.L 7 Marina aviation
Block-2 Clifton
Karachi
0301-3719957
Stone Supplier/
Trader
2 Mr. Zafar Zehri
M/s Zafar Zehri
Marble Industries
(Pvt) Ltd.
F-7 S.I.T.E, Mauripur
Road Karachi.
021-5863787
Mine /Quarry Owner
3 Mr. Ilyas M/s N-Traders
Plot No. 100-10,
Sector B, Street No.
2, Marble City,
Gadani, Lasbela,
Balochistan
0346-2332552
• Marble Machinery
• Marble Stone
4 Mr. Toufique
Ahmad,
Pakistan Stone
Development
Company, Islamabad
Islamabad Chamber
of Commerce &
Industry Building,
Islamabad
Consultant/ Sector
Development
company
5
Mr. Mehtab Afridi Dimension Stone
Center, PCSIR Labs
University Road,
Peshawar
0345-9112690
Consultant/
Development
Institute
6 Mr. Zahoor
ZAK Marble Factory
Kili Gul Mohammad,
Airport Road, Quetta
Email:
zakakar@yahoo.com
0300-9383853
Onyx Hand Picks
Suppliers

14. ANNEXURES
14.1 Income Statement
Projected Income Statement
YEAR- 1 YEAR- 2 YEAR- 3 YEAR- 4 YEAR- 5 YEAR- 6 YEAR- 7 YEAR- 8 YEAR- 9 YEAR- 10
SALES
Flower Vase (12”x12”) &
(8”x12”) 896,000 985,600 1,084,160 1,192,576 1,311,834 1,443,017 1,587,319 1,746,051 1,920,656 2,112,721
Chess Board
(13.58”x13.58”) 586,500 645,150 709,665 780,632 858,695 944,564 1,039,021 1,142,923 1,257,215 1,382,936
Jar (8x12) 1,155,000 1,270,500 1,397,550 1,537,305 1,691,036 1,860,139 2,046,153 2,250,768 2,475,845 2,723,430
Animal Shapes 361,500 397,650 437,415 481,157 529,272 582,199 640,419 704,461 774,907 852,398
Ash Tray (4”x4”) 270,300 297,330 327,063 359,769 395,746 435,321 478,853 526,738 579,412 637,353
Photo Frame 58,200 64,020 70,422 77,464 85,211 93,732 103,105 113,415 124,757 137,233
- - - - - - - - - -
Revenues from Wastage 2,345,000 2,579,500 2,837,450 3,121,195 3,433,315 3,776,646 4,154,311 4,569,742 5,026,716 5,529,388
5,672,500 6,239,750 6,863,725 7,550,098 8,305,108 9,135,618 10,049,180 11,054,098 12,159,508 13,375,459
COST OF SALES
Flower Vase (12”x12”) &
(8”x12”) 90,087 93,690 97,438 101,335 105,389 109,604 113,989 118,548 123,290 128,222
Chess Board
(13.58”x13.58”) 275,187 286,194 297,642 309,548 321,930 334,807 348,199 362,127 376,612 391,677
Jar (8x12) 162,579 169,082 175,845 182,879 190,194 197,802 205,714 213,942 222,500 231,400
Animal Shapes 848,083 882,006 917,286 953,978 992,137 1,031,822 1,073,095 1,116,019 1,160,660 1,207,086
Ash Tray (4”x4”) 634,127 659,492 685,871 713,306 741,838 771,512 802,372 834,467 867,846 902,560
Photo Frame 136,538 141,999 147,679 153,586 159,730 166,119 172,764 179,674 186,861 194,336
COST OF GOODS SOLD 2,146,599 2,232,463 2,321,762 2,414,632 2,511,218 2,611,666 2,716,133 2,824,778 2,937,770 3,055,280
Electricity Expanse 300,000 330,000 363,000 399,300 439,230 483,153 531,468 584,615 643,077 707,384
Payroll Expanses 1,272,000 1,272,001 1,272,002 1,272,003 1,272,004 1,272,006 1,272,007 1,272,008 1,272,009 1,272,010
Deprecition Expanse 64,880 61,636 58,554 55,626 52,845 50,203 47,693 45,308 43,043 40,891
Machine Maintenance Expanse 55,904 49,309 46,843 44,501 42,276 40,162 38,154 36,246 34,434 32,712
Rent Expanse 50,000 52,500 55,125 57,881 60,775 63,814 67,005 70,355 73,873 77,566
Telephone Charges 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232
Water Charges 36,000 37,800 39,690 41,675 43,758 45,946 48,243 50,656 53,188 55,848
Gas Charges 60,000 63,000 66,150 69,458 72,930 76,577 80,406 84,426 88,647 93,080
Amortization of Preliminary Expanses - - - - - - -
TOTAL OPERATING EXPANSES 1,862,784 1,891,446 1,927,825 1,968,227 2,012,992 2,062,492 2,117,138 2,177,385 2,243,730 2,316,723
EARNINGS BEFORE INTEREST & TAXES 1,663,117 2,115,841 2,614,139 3,167,238 3,780,898 4,461,460 5,215,909 6,051,935 6,978,009 8,003,456
FINANCIAL EXPENSES
Financial Charges on Long term loan 142,843 131,416 116,687 100,781 83,602 65,049 45,012 23,372 - -
TOTAL FINANCIAL EXPENSES 142,843 131,416 116,687 100,781 83,602 65,049 45,012 23,372 - -
PROFIT BEFORE TAX 1,520,274 1,984,425 2,497,451 3,066,457 3,697,296 4,396,411 5,170,897 6,028,564 6,978,009 8,003,456
180,123 270,668 376,035 514,310 667,725 860,938 1,087,273 1,340,677 1,664,803 2,023,709
PROFIT AFTER TAX 1,340,150 1,713,757 2,121,416 2,552,147 3,029,571 3,535,473 4,083,624 4,687,886 5,313,206 5,979,746
Retained Earnings at the beginning of year - 1,340,150 2,383,832 3,648,370 5,139,810 6,893,307 8,913,994 11,229,882 13,875,957 16,845,219
Dividend 670,075 856,879 1,060,708 1,276,074 1,514,786 1,767,736 2,041,812 2,343,943 2,656,603
Retained Earnings at the end of year 1,340,150 2,383,832 3,648,370 5,139,810 6,893,307 8,913,994 11,229,882 13,875,957 16,845,219 20,168,362
INCOME TAX

14.2 Statement of Cash Flow
Projected Cash Flow Statement
YEAR- 0 YEAR- 1 YEAR- 2 YEAR- 3 YEAR- 4 YEAR- 5 YEAR- 6 YEAR- 7 YEAR- 8 YEAR- 9 YEAR- 10
OPERATING ACTIVITIES
Net Profit - 1,520,274 1,984,425 2,497,451 3,066,457 3,697,296 4,396,411 5,170,897 6,028,564 6,978,009 8,003,456
Add:
Depreciation - 64,880 61,636 58,554 55,626 52,845 50,203 47,693 45,308 43,043 40,891
Net profit before working capital changes - 1,585,154 2,046,061 2,556,005 3,122,084 3,750,141 4,446,614 5,218,590 6,073,872 7,021,051 8,044,346
Working Capital changes
Raw materials stock (213,330) 1,619 (8,468) (8,807) (9,159) (9,526) (9,907) (10,303) (10,715) (11,144) (11,590)
W.I.P - (7,034) (281) (293) (304) (317) (329) (342) (356) (370) (385)
Finished goods stock - (48,161) (1,926) (2,003) (2,084) (2,167) (2,254) (2,344) (2,438) (2,535) (2,636)
Accounts payable - 178,883 7,155 7,442 7,739 8,049 8,371 8,706 9,054 9,416 9,793
Accounts receivable - (472,708) (47,271) (51,998) (57,198) (62,917) (69,209) (76,130) (83,743) (92,117) (101,329)
Working capital changes (213,330) (347,401) (50,792) (55,660) (61,006) (66,878) (73,328) (80,414) (88,198) (96,751) (106,148)
- (180,123) (270,668) (376,035) (514,310) (667,725) (860,938) (1,087,273) (1,340,677) (1,664,803) (2,023,709)
Cash provided by/ used in operations (213,330) 1,057,629 1,724,601 2,124,311 2,546,768 3,015,538 3,512,348 4,050,903 4,644,996 5,259,498 5,914,489
FINANCING ACTIVITIES
Long term loan 1,785,537 - - - - - - - - - -
Owner equity 198,393
Dividend paid - (670,075) (856,879) (1,060,708) (1,276,074) (1,514,786) (1,767,736) (2,041,812) (2,343,943) (2,656,603)
Cash provided by/ used in Financing activities 1,983,930 - (670,075) (856,879) (1,060,708) (1,276,074) (1,514,786) (1,767,736) (2,041,812) (2,343,943) (2,656,603)
INVESTING ACTIVITIES
Capital Expenditure (1,397,600) - - - - - - - - -
Cash provided by/ used in Investing activities (1,397,600) - - - - - - - - - -
Net Cash Flow 373,000 1,057,629 1,054,526 1,267,432 1,486,060 1,739,465 1,997,562 2,283,167 2,603,184 2,915,554 3,257,886
Cash balance B/ F - 373,000 1,430,629 2,485,155 3,752,588 5,238,647 6,978,112 8,975,674 11,258,841 13,862,025 16,777,579
Cash balance C/ F 373,000 1,430,629 2,485,155 3,752,588 5,238,647 6,978,112 8,975,674 11,258,841 13,862,025 16,777,579 20,035,465

14.3 Balance Sheet
Projected Balance Sheet
YEAR-0 YEAR - 1 YEAR - 2 YEAR - 3 YEAR - 4 YEAR - 5 YEAR - 6 YEAR - 7 YEAR - 8 YEAR - 9 YEAR - 10
ASSETS
Current Assets
Cash & Bank Balance 373,000 1,530,629 2,652,568 3,684,393 4,972,897 6,499,001 8,266,133 10,300,436 12,176,488 15,092,042 18,349,928
Raw materials stock 213,330 211,711 220,179 228,987 238,146 247,672 257,579 267,882 278,597 289,741 301,331
W.I.P - 7,034 7,316 7,609 7,913 8,229 8,559 8,901 9,257 9,627 10,012
Finished goods stock - 48,161 50,087 52,091 54,174 56,341 58,595 60,939 63,376 65,911 68,548
Receivables - 472,708 519,979 571,977 629,175 692,092 761,302 837,432 921,175 1,013,292 1,114,622
586,330 2,270,244 3,450,130 4,545,056 5,902,306 7,503,336 9,352,167 11,475,590 13,448,893 16,470,615 19,844,441
TOTAL CURRENT ASSETS
Fixed Assets
At Cost less: Acc. Depreciation 1,397,600 1,232,720 1,171,084 1,112,530 1,056,903 1,004,058 953,855 906,162 860,854 817,812 776,921
- - - -
TOTAL ASSETS 1,983,930 3,502,964 4,621,214 5,657,586 6,959,209 8,507,394 10,306,022 12,381,752 14,309,748 17,288,426 20,621,362
LIABILITIES AND EQUITY
Current Liabilities
Current maturity of long term loan 198,829 214,735 231,914 250,467 270,504 292,145 - - -
Accounts Payable - 178,883 186,039 193,480 201,219 209,268 217,639 226,344 235,398 244,814 254,607
TOTAL CURRENT LIABILITIES - 178,883 384,867 408,215 433,133 459,735 488,143 518,489 235,398 244,814 254,607
Non current Liabilities
Long term Loan 1,785,537 1,785,537 1,654,121 1,402,608 1,187,873 955,959 705,492 434,988 - - -
EQUITY
Paid up Capital 198,393 198,393 198,393 198,393 198,393 198,393 198,393 198,393 198,393 198,393 198,393
Retained Earnings - 1,340,150 2,383,832 3,648,370 5,139,810 6,893,307 8,913,994 11,229,882 13,875,957 16,845,219 20,168,362
Total Equity 198,393 1,538,543 2,582,225 3,846,763 5,338,203 7,091,700 9,112,387 11,428,275 14,074,350 17,043,612 20,366,755
TOTAL LIABILITIES & EQUITY 1,983,930 3,502,964 4,621,214 5,657,586 6,959,209 8,507,394 10,306,022 12,381,752 14,309,748 17,288,426 20,621,362

Pre-Feasibility Study Marble & Onyx Products Manufacturing Unit
14.4 Useful Project Management Tips
Technology
• List of Machinery & Equipment (As per Section 12.5)
• Required spare parts & consumables: Suppliers credit agreements and
availability as per schedule of maintenance be ensured before start of
operations.
• Energy Requirement: Should not be overestimated or installed in excess and
alternate source of energy for critical operations be arranged in advance
• Machinery Suppliers: Should be asked for training and after sales services
under the contract with the machinery suppliers. They must be communicated
about the timely availability with clear mutual understanding of the required
time period.
• Quality Assurance Equipment & Standards: Products quality standards
need to be defined on the packaging
Marketing
• Product Development & Packaging: Expert help may be engaged for
product / service and packaging design & development
• Sales & Distribution Network: Strong contacts to be established with
civil works contractors focusing upon house construction for middle class
people and owners of retail shops.
• Price - Bulk Discounts, Cost plus Introductory Discounts: Price during
introductory phase may be lower and used as promotional tool. Product cost
estimates should be carefully documented before price setting.
Human Resources
• List of Human Resource: (As per Section 12.9)
• Adequacy & Competencies: Skilled and experienced staff should be
considered an investment even to the extent of offering share in business
profit.
• Performance Based Remuneration: Attempt to manage human resource cost
should be focused through performance measurement and performance based
compensation.
• Training & Skill Development: Encouraging training and skill of self &
employees through experts and exposure of best practices is route to success.

Least cost options for Training and Skill Development (T&SD) may be linked
with compensation benefits and awards
14.5 Useful Links
Prime Minister’s Office
www.pmo.gov.pk
Government of Pakistan
www.pakistan.gov.pk
Ministry of Industries & Production
www.moip.gov.pk
Ministry of Education, Training & Standards in Higher Education
http://moptt.gov.pk
Small & Medium Enterprises Development Authority (SMEDA)
www.smeda.org.pk
State Bank of Pakistan (SBP)
www.sbp.org.pk
National Bank of Pakistan (NBP)
www.nbp.com.pk
First Women Bank Limited (FWBL)
www.fwbl.com.pk
Trade Development Authority of Pakistan (TDAP)
www.tdap.gov.pk
Security Commission of Pakistan (SECP)
www.secp.gov.pk
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
www.fpcci.com.pk

15. KEY ASSUMPTIONS
Machinery Assumptions
Maximum Capacity Utilization 100%
Total Production of the unit per day (Sq.Ft) 19
Total Production of the unit per month (Sq.Ft) 502
Total Production of the unit per year (100%) 12,060
Operating Assumptions
Annual Production capacity (50%) 6,030
Days operational per month 26
Days operational per year 312
Economy Related Assumptions
Electricity growth rate 10%
Wage growth rate 10%
Sales growth rate 10%
Cash Flow Assumptions
Accounts Receivable cycle (in days) 30
Accounts payable cycle (in days) 30

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